A naukri.com initiative
Noupe
1M
113
Image Credit: Noupe
Artificial Intelligence in Fraud Prevention: What Online Businesses Need to Know
- Artificial Intelligence has proven to be a helpful tool for online companies in detecting, preventing, and responding to fraudulent activities in real-time.
- With the capability of analyzing large amounts of data, AI tools can easily highlight various patterns of possible fraud in seconds. It can also improve accuracy via machine learning by learning from real-world situations.
- Unlike traditional systems, AI-based fraud detection tools understand the common marks of fraudulent activities and take less time to achieve this.
- Advanced machine learning models are superior in fraud versus non-fraud transaction classification, as it can analyze historical customer behavior to uncover outliers that may be unseen by human analysts.
- AI-powered fraud prevention tools work in real-time and filter out all legitimate transactions, highlighting only those that need further investigation, thereby drastically reducing the load on human fraud analysts.
- AI-powered systems learn and improve over time, making them competitive against evolving fraud techniques, providing a sense of security against changing threats.
- For accurate results, online businesses need to invest in high-quality data collection as AI systems learn from training data.
- AI has advantages over traditional fraud prevention methods with its increased accuracy, reduced operational costs, and scalability as businesses grow.
- The AI implementation process entails assessing the current fraud prevention strategy, partnering with reliable AI vendors, training and implementing the AI tool, and monitoring and optimizing the system's performance.
- GDPR laws should be considered while deploying AI systems as compliance is a huge factor, especially concerning sensitive customer data.
Read Full Article
6 Likes
For uninterrupted reading, download the app